United States Economic Update – 14 August 2015

Economic growth strengthened in the June quarter and is set to remain above its long-term trend rate. The Fed is likely to raise rates this year. We expect this to start in September although it could easily be delayed. Subsequent rate hikes will occur at a slow pace by past standards.

By

Key Points

  • Economic growth strengthened in the June quarter, and is set to remain above its long-term trend rate.
  • The Fed is likely to raise rates this year. We expect this to start in September although it could easily be delayed. Subsequent rate hikes will occur at a slow pace by past standards.
  • The neutral fed funds rate, and the likely peak fed funds rate in this cycle, are lower than in the past.

For further details please see the attached document.

US Economic Update – 14 August 2015 (PDF, 113KB)